Dearborn Dealership on Chrysler List of Cuts
Thursday, May 14th, 2009Dearborn’s Joe Ricci Dodge, 14765 Michigan Ave., is among the 789 dealerships that Chrysler LLC says it will seek to slash by June 9, according to the court document listing the names of the dealerships.
According to the Detroit Free Press, some of the 789 dealers will try to stay in business, selling used cars and offering auto services. Joe Ricci Dodge is among some 40 dealerships in Michigan on Chrysler’s closure list.
With the dealerships now identified, Chrysler must sell the 44,000 vehicles sitting on their lots in the next few weeks without driving prices to fire-sale levels for remaining dealers, the Free Press reports
According to the Free Press, Chrysler said it would move the inventory from the rejected dealers to those that stay open and try to sell most of it over the next four to six weeks. But it’s unclear who gets the money from the sale of those vehicles.
Chrysler’s Steven Landry, executive vice president of North American sales and marketing, told the Free Press there would be no compensation to dealers who owe various amounts to Chrysler Financial for that inventory.
